The UAE Government has issued a new Federal Decree Law on Civil Transactions, marking a major overhaul of the country’s civil legal framework and reinforcing its commitment to clarity, consistency, and modern governance.
The new law introduces a comprehensive and integrated structure governing rights and obligations, replacing fragmented provisions with a unified and practical approach. It forms part of a broader legislative strategy aimed at modernising federal laws while reducing overlap with recently enacted special legislation.
From a judicial standpoint, the law expands judicial discretion by allowing courts to rely on the principles of Islamic Sharia when no statutory provision applies. Judges are empowered to select solutions that best serve justice and public interest, without being confined to a specific school of jurisprudence. Sharia principles will also apply in the absence of special legislation relating to missing persons, absentees, and individuals of unknown parentage.
Among its most notable reforms, the law lowers the age of majority from 21 lunar years to 18 Gregorian years, aligning civil capacity with labour and juvenile laws. It also enables minors aged 15 to seek judicial approval to manage their assets, supporting youth participation in economic activity.
The legislation strengthens contractual transparency by regulating pre contractual negotiations and introducing framework agreements for long term commercial relationships. It also enhances protections related to sales, latent defects, compensation for harm, and the integrity of judicial processes.
Corporate provisions have been updated to align with commercial laws, allowing single person companies and introducing dedicated frameworks for nonprofit and professional companies.
Overall, the new Civil Transactions Law aims to enhance legal certainty, support economic growth, and ensure a coherent balance between federal and local legislative authority across the UAE.
News Source: Emirates News Agency
